Borrow from Peter, Buy Back from Paul

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Several companies that raised money in the debt markets this week will use a sizable portion to repurchase their stock or other securities.

General Cable, which designs, manufactures and markets copper, aluminum, and fiber-optic wire and cable products, on Tuesday announced the sale of $325 million in senior notes in the private placement market. The company announced that it will repurchase $285 million in expensive, 9.5 percent senior notes due 2010; the remaining net proceeds will be used for general corporate purposes.

Developers Diversified Realty will offer $400 million in convertible senior notes due 2012 through the private placement market. The company plans to repurchase about $75 million of its common shares and to use a portion of the net proceeds to fund a convertible note hedge transaction. The balance of the net proceeds will be used for the repayment of outstanding debt under the company’s senior unsecured credit facility and for other general business purposes.

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Cypress Semiconductor will offer $500 million in convertible senior notes. The company plans to use the net proceeds to repurchase its common stock.

Celanese will refinance its existing senior credit facilities, senior subordinated notes, and senior discount notes and repurchase about $400 million of its common stock. The company will establish a new credit facility of up to $3.63 billion and retire its existing credit facility of up to $2.45 billion. Celanese will then tender for all outstanding 9.625 percent senior subordinated notes due 2014, 10 percent senior discount notes due 2014, and 10.5 percent senior discount notes due 2014.